In an auction where the bidders values are $740, $700, $660, $650, $400, $325 and $300, the highest three bidders decide to form a bid-rigging cartel. What would the winning bid be in this auction?

If consumption of a good by one person imposes costs on a party other than the producer,

a. the consumption creates a positive externality b. the good is a public good c. the consumption creates a negative externality d. too little of the good is produced from society's point of view e. the market will correct the problem if left alone

Refer to the data. Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) shown to columns (2) and (3). Economic profit will:

A.  fall by $10.
B.  fall to $6.
C.  increase by $10.
D.  decline to zero.